Pacific Sunwear to prepare Chapter 11 bankruptcy filing

According to sources, U.S-based surfwear chain Pacific Sunwear of California Inc. (PacSun) was preparing to file for Chapter 11 bankruptcy as early as next week.

Sluggish retail spending and shifting consumer tastes claimed peers such as American Apparel Inc. and Quiksilver Inc. into bankruptcy in 2015.

The company, which operated about 613 stores, had recorded losses each year since 2008, and its shares had plunged about 90% in the past 12 months.

PacSun had a $60m Sr. secured Term Loan provided by an affiliate of private equity firm Golden Gate Capital.

Source: Bloomberg